The Financial Planning Association of Australia The Financial Planning Association of Australia

ASIC industry funding model

ASIC operates on a cost recovery model. Based on the legislated model, the following levies may apply to financial advice licensees. Which levies apply will be dependent on the authorisations held on the AFS licence.

Personal advice levy

The model for licensees providing tier 1 personal financial advice (section 43) includes a fixed levy component plus a graduated levy component using the following formula:

The minimum levy component is $1,500. You must add to this amount the graduated levy component based on the following formula:

Other levies may apply to financial planners

It is important to remember that the application of each levy is determined by the authorisations held on your licence and the definition of each section within the Regulations. Hence, in addition to the personal advice levy, you may also incur the following levies:

  • Insurance product distributor – will capture those authorised to ‘deal’ in general insurance, life risk insurance products or investment life insurance products (section 70)
  • Securities dealer – will capture those licensed to ‘deal’ in securities, with more than $250,000 in transactions executed on, or reported to, a large securities exchange in the financial year. (section 67)
  • MDA – will capture those who provide MDA’s including limited MDA services (section 32).

Other advice levies

If you do not provide tier 1 personal advice, or if you change your advice authorisation during the financial year, you may fall into the following advice levy sub-sectors:

  • Licensees that provide only general advice to retail or wholesale clients (section 40)
  • Licensees that provide personal advice to only wholesale clients (section 41)
  • Licensees that provide personal advice to retail clients on only products that are not relevant financial products (ie. basic products – section 42)

Visit ASIC website for further detail on the operations of the Industry Funding model.

Read the Regulations

Read the Explanatory Memorandum

Any questions?

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